A check or cash isn’t always sufficient for paying a bill or making a purchase payment. Money orders, on the other hand, are widely accepted when cash or checks are not. If you don’t have a checking account, a money order can be used to pay bills or creditors in place of a check. Here are some ideas for how to pay for a money order.
Method 1: Selecting a Payment Method
1. Make use of cash. The most common method of payment for a money order is cash. You can buy a money order with cash from any money order provider. You simply pay the money order amount plus a fee.
Companies that issue money orders want the most secure form of payment possible because their money is effectively gone once the money order is issued.
You can also use a debit card linked to your bank account to pay.
A personal check cannot be used to pay for a money order. Checks can take several days to clear. If you do not have enough funds, the money order issuer will lose the money.
2. Purchase a money order using traveler’s checks. The only place where you can buy a money order with a traveler’s check is at the US Post Office (USPS). You must pay the amount of the money order plus a fee based on the amount of the money order. Sign the traveler’s check in front of the postal worker who is preparing the money order for you when you pay.
Because traveler’s checks are recognised as a form of cash, the USPS is willing to accept them.
3. Using a credit card, purchase a money order. Some money order companies will let you use a credit card, but not all. A money order can be purchased with a credit card at Western Union and 7-Eleven. Using a credit card to purchase a money order is costly. Your card company will most likely treat it as a cash advance. This means you’ll be charged the higher interest rates and fees that come with cash advances. Also, just as you don’t earn points or rewards for cash advances, you won’t earn them for purchasing a money order.
4. Use a PIN-enabled Visa or MasterCard gift card to pay. You can use one of these cards to make payments at Western Union, Walmart, the post office, and 7-Eleven. However, doing so is frequently associated with suspicious activity. Some people, for example, buy these pre-paid cards and then immediately liquidate them in order to take advantage of any available rewards. The money orders are then deposited into their bank accounts and used to pay their bills. However, depositing a large number of money orders into your bank account appears to be money laundering, and your bank may close your account as a result.
5. Purchase a money order from a distance. Some businesses now allow you to buy and send money orders online. You can, for example, use Payko to purchase a money order online and pay with your PayPal account, which is linked to a credit card or bank account. However, you can only buy one $200 money order per day. This method is slower than other types of online bank transfers. Instead of transferring funds instantly from one account to another, a physical money order is printed and mailed to the recipient. This could take a few days.
Money can be sent over the phone, but it is not the same as a money order. You can call a remittance service, such as Western Union, and request an electronic transfer of funds. You can use a credit or debit card to make your payment. In this case, however, no physical money order is printed. Rather, funds are electronically transferred from your bank account to the recipient’s account.
Method 2 Paying Fees
1. Get a money order from the bank. Banks typically charge the highest fees for money orders. Each bank levies a different fee. For money orders up to $1,000, some banks may charge as little as $1.25. Others may charge you up to $5.00. If your bank charges more than $1.25 for money orders, consider going somewhere else to get one.
2. Visit the post office. Money orders up to $500 cost $1.25 at the post office, and money orders up to $1,000 cost $1.65. This is not the cheapest fee for money orders. People, on the other hand, are less likely to question the legitimacy of a money order from the United States Postal Service. It is a well-known and well-respected money order issuer. In addition, the post office is the only place where you can pay with traveler’s checks. Finally, if you need to send the money order to someone, you can do so in one transaction by purchasing the money order and mailing it.
3. Employ the services of a remittance service provider. Remittance service providers are locations where you can send money electronically. Western Union, MoneyGram, and Walmart are a few examples. Money orders up to $1,000 cost 70 cents at Walmart. The fees for money orders vary by branch at Western Union and MoneyGram. A money order of up to $1,000 will cost at least $1.
4. Make a payment for online money orders. Payko is a company that lets you buy money orders online. However, their fees are significantly higher than those charged when purchasing a money order in person. Expect to pay a one-time fee ranging from $3.49 to $4.99. In addition, you will be charged a fee of 5.49 percent of the money order’s value. Finally, you must pay postage to deliver the money order to the recipient. Expect to pay around $15 if you want to send it via express mail.
5. If you require more than $1,000, purchase multiple money orders. Money orders are typically limited to $1,000. If you require more money, you must purchase multiple money orders. This means you’ll have to pay multiple fees.
If you need $2,200 in money orders and go to the USPS, you’ll need to buy two $1,000 money orders for $1.65 each and one $200 money order for $1.25. This totals $4.55.
Method 3 Considering Your Options
1. Consider alternatives to money orders. Money orders are both inexpensive and convenient. However, they attract scammers, and some businesses refuse to accept them as payment. Furthermore, because money orders must be purchased in person, they may not be as convenient as other forms of payment.
Consider paying for your purchase with a personal check if you don’t mind the recipient seeing your bank account information.
Because they are drawn on the funds of the issuing bank and signed by a bank representative, cashier’s checks are more secure than money orders. Furthermore, there is no limit to the amount of the cashier’s check. http://www.thesimpledollar.com/how-do-money-orders-work/</ref>
Wire transfers make it possible to send money to a recipient quickly.
Pre-paid debit cards can be used if you do not have a bank account or good credit. They provide the convenience of a credit card without the risk of incurring significant debt.
2. Contrast the fees for a money order with those for other forms of payment. Money orders are relatively inexpensive. People may, however, choose to pay higher fees for other forms of payment. This could be for security or convenience.
You will almost certainly have to pay monthly account fees if you want to be able to write personal checks from your checking account.
Money orders are less expensive than cashier’s checks. They can cost up to $10 each.
Wire transfers can be costly, especially if you need to send money quickly. To wire money to someone overnight, expect to pay at least $25 to $30.
3. Examine the safety features. Money orders are sometimes regarded as a dishonourable method of payment. Someone can steal a money order and make themselves the recipient. In addition, many scammers attempt to use forged money orders.
Personal checks are more secure because they are linked to your bank’s security.
Cashier’s checks are safe because the issuing bank guarantees them and they are signed by a bank representative.
Wire transfers are considered secure because the identities of both parties are verified prior to the transfer.
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